Outgrowing Your Structure
I recently met with a couple who are becoming progressively more frustrated with their finances. This seems counterintuitive, though, as they are making far more money than they ever have before. Why, then, are they getting frustrated? It's pretty simple: The current complexity of their life has outgrown their financial structure.
Translation: The way they used to handle finances worked well then, but not so much anymore. It was easy to wing it and be more casual when there was less income and fewer obligations. However, life is getting more complicated, and the old way of doing things seems inadequate at best, destructive at worst.
It reminds me of a similar situation we're having at Northern Vessel. Nearly four years in, it's safe to say our business looks a little different than it once did. During a recent team dinner (celebrating one of our team members who left to pursue a new dream), it was time to pay the bill. TJ couldn't be there, so it was on me to pay. Unfortunately, I forgot to ask TJ for the debit card. At the last second, Jack swooped in to pay the bill, somehow having TJ's card in his wallet.
That's right, we literally have only one debit card. The entire company has been operating with one debit card and one checkbook. We have tens of thousands of dollars in monthly expenses, yet the entire operation rests on one debit card and one checkbook. We've outgrown our structure, and we're experiencing the consequences.
Whether it's the family I mentioned above or a company like Northern Vessel, we must iterate on the structure as we grow. What once worked might not be adequate in the new season of being. Taking the "this is the way we've always done it" approach is a surefire way to end up in a bad place. Therefore, we need to give ourselves permission to evolve, adjust, and continue to find better ways to handle ourselves.
Some of you are handling your family's finances the same way you did when you were young, single, broke, and fresh out of college. Except now, you have a spouse, kids, a house, and multiple incomes. It might be time to update the structure! For some of you, simply upgrading the way you do things might be the ticket to significantly better outcomes. It doesn't matter if you've done it the same way for 20 years.....it might be time to adjust.
Never be scared to make changes. As life becomes more complicated, find ways to simplify and find order amidst the chaos. You'll thank yourself later!
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